CLEVELAND real estate agency Approved Realty, which trades as iapproved, has been fined for not paying trust account funds.
An Office of Fair Trading spokesperson said the agency was ordered to pay $7670 in fines and compensation.
The spokesperson said the case was heard in the Cleveland Magistrates Court on Tuesday after an OFT investigation.
The spokesperson said Approved Realty pleaded guilty to four counts relating to failing to pay trust account funds and one count of failing to provide information to OFT inspectors.
Approved Realty was ordered to pay $6500 in fines and a further $1170 in compensation to the affected consumer.
A spokesperson for Approved Realty said the matter related to an administrative error in 2017 by a previous business associate.
He said it had been dealt with and appropriate systems put in place.
The OFT spokesperson said the OFT began investigating the agency after receiving a complaint from a property owner who failed to receive rental income for his Alexandra Hills property.
"The court heard the agency performed property management services for the client, including the payment of rates and lawn maintenance," the spokesperson said.
"Rental amounts were to be paid into the agency’s trust account and paid to the owner on a weekly basis.
"Between July 13, 2017 and July 27, 2017 the agency received a total of $1170 in rent monies that they failed to pay from the account to the property owner."
The spokesperson said the court heard that the agency had failed to comply with a notice from OFT inspectors to provide information to help with their investigation.
Fair Trading acting executive director Craig Turner said the OFT would continue to take action against property agents who put their clients funds at risk.
"Reports made to the OFT of property agents disregarding their legal obligations are taken very seriously," Mr Turner said.
"Breaches of trust by real estate agents weakens consumer confidence in the property industry."
